Financial Statement Analysis Of Shede Spirits Co.,Ltd Based On Harvard Analysis Framework

China has a long history and cultural heritage of Spirits which are considered as an inheritance and witness to the development of an era.As the representative of the secondary-high brands,Shede Spirits successfully implemented the mixed-ownership reform on June 30,2016,and SkyOcean Holdings Group entered and hosted Shede Spirits for 3.822 billion yuan.After reorganization,Shede Spirits has reached great achievements with its growth rate of net profit ranking first in the industry for three consecutive years,due to its reforms on the brand,product lines,sales team,organizational structure and the recovery of the industry of Spirits.As the brand enters a new cycle of high-quality development,a problem that should be paid higher attention is that how to achieve sustainable development.Financial statements are the carrier of business results of enterprises.Therefore,they are comprehensively analyzed in order to find the problems in the implementation of strategies and propose methods for improvement.This is the purpose of this paper.In this paper,this article studies the financial information of Shed Spirits from2015 to 2018 is studied based on the Harvard Analysis Framework.In terms of strategic analysis,the PEST Analysis Method,the Porter’s Five-Force Model and the SWOT Analysis Method are used to sort out the macro-environment,industry conditions,opportunities and challenges Shede Spirits are beset with as well as its own advantages and disadvantages.In terms of accounting analysis,the key projects are identified to evaluate their accounting policies and accounting quality.In terms of financial analysis,the composition of its balance sheet,profit statement and cash flow statement is analyzed.The ratio analysis of the company’s solvency,operating capacity,profitability and growth ability are horizontally conducted and compared with its competitors.In terms of prospect analysis,the future development of the industry of Spirits and enterprises in it is analyzed and predicted,and the Price-Earnings Ratio Model,the Price-to-book Ratio Model and Free Cash Flow of Firm are used for valuation.By analysis,it is found that while the profitability and growth ability of the Shede Spirits keep increasing,it has some problems in its finance and operation,and a distance to catch up with its competitors,comparing its comprehensive strength with theirs.The problems of Shede Spirits are drawn by analysis that its utilization rate of funds,turnover rate of accounts receivable,inventory management,cost-output efficiency and number of talents are not so good that sales in the low-end market decline.To respond to these problems,suggestions are proposed on asset management,product development,online sales,talent training and so on,so that references can be provided for the sustainable development of Shede Spirits and other enterprises of Spirits.